Risk Warning:
Recently, the Financial Intelligence Analysis Unit (FIU) of South Korea issued a suspension notice to Upbit, the largest cryptocurrency trading platform in South Korea, mainly because Upbit violated the anti-money laundering obligations such as customer identification (KYC) in the (Specific Financial Transaction Information Act). According to the financial industry on January 16, the FIU issued a preliminary notice of sanctions to Upbit on the 9th of this month for violating relevant regulations, and the core content was suspension of business. If the punishment is finally determined, Upbit will be restricted from conducting new customer-related business during the suspension period (up to 6 months), but existing users' transactions can still proceed normally.
This regulatory move had a significant impact on the market. It happened that the price of Bitcoin (big pie) reached the daily suppression line and fell back. Previously, market analysts have reminded investors to pay attention to the possible head-and-shoulders top pattern of Bitcoin falling back. At present, this prediction seems to be more accurate. In addition, the Hukou line has also rebounded. The next focus of the market is whether the Hukou line can withstand the pressure.
South Korea's suspension of Upbit's business has not only affected Upbit's own business development, but also had an impact on the sentiment of the entire cryptocurrency market. As a occupant of more than 70% of the Korean cryptocurrency trading market, Upbit's business restrictions have triggered further market attention to the security and compliance of cryptocurrency trading. This incident also reminds investors that in the cryptocurrency market, changes in regulatory policies have an impact on market trends that cannot be ignored.
From a technical analysis perspective, Bitcoin's price trend shows some pressure at the daily level. When the price touches the daily suppression line, the seller's power increases, causing the price to fall back. The emergence of the head and shoulders top pattern further confirms the formation of the top of the market in the short term, indicating that there may be a deeper correction in the future. Although the rebound of the Hukou line has brought a glimmer of hope to the market, whether it can continue to withstand the pressure still needs further observation.
South Korea's suspension of Upbit's business has not only had a direct impact on Upbit's business, but also had an indirect impact on the sentiment and trend of the entire cryptocurrency market. Market participants need to pay close attention to the performance of the Hukou Line and further developments in regulatory policies to assess the strength of the market correction that this negative event may bring.